THE SUPPLY SIDE IN DALAT CITY, VIETNAM HA NAM KHANH GIAO - LE THAI SON Abstract: The research attempted to examine resource factors affecting the development of MICE at Dalat, by determi
Trang 1THE SUPPLY SIDE IN DALAT CITY, VIETNAM
HA NAM KHANH GIAO - LE THAI SON
Abstract: The research attempted to examine resource factors affecting the
development of MICE at Dalat, by determining the stakeholders, and by
interviewing 350 resources (means from the supply side). The methods of Cronbachs
Alpha, Exploratory Factor Anaalysis (EFA), Confirmatory Factor Analysis (CFA)
together the Structural Equation Modelling (SEM) were used by the programs of
SPSS and AMOS.
The result shows that MICE development is affected by MICE destination resources,
then MICE destination resources is affected by 3 main factors, arranged by the
importance decreasing: (1) Organization resources; (2) MICE tourist resources;
(3) Supplier resources. From that, the research raises some solutions for management
and policy makers to develop MICE better.
1. Introduction MICE concept
MICE is an acronym for Meeting, Incentive, Conference and Exhibition, which is widely used in Asia and North America (Dwyer &ctg, 2001). Australia uses the concept of business events; Canada uses the acronym MC and IT (Meetings, Conventions & Incentive Travel) (Rogers, 2003). According to UNWTO (2006), the industry conference (commonly used in Europe) consists of the main components
of MICE
MICE tourism has the following important characteristics: (1) high growth potential, (2) high added value, and (3) high renewal benefits. With these characteristics, countries around the world are focusing on developing MICE tourism
as a national economic recovery (Janakiraman, 2012). According to the UNWTO,
in the convention sector, the ICCA said there were about 11,505 conferences -seminars held annually around the world, spending about $ 280 million, creating value for stakeholders. Approximately $ 1.16 billion (in which the conference is $ 0.4 billion and the exhibition is $ 0.76 billion). The MICE tourism industry offers tremendous economic benefits to the host country and city hosting the event Vietnam is now an attractive destination for domestic and foreign tourists thanks to the well-known natural heritage recognized by UNESCO. By 2016, 747 hotels, resorts from 3 to 5 stars with 82,325 rooms, many international convention and exhibition centers had been operating (VNAT, 2016). Infrastructure for tourism has rapidly improved, transport infrastructure has developed rapidly, more
Keywords: MICE destination resources, MICE tourist resources, MICE tourism development,
Organization resources, Supplier resources.
Trang 2international routes have been established, and airports are expanded to meet the needs of visitors and arrivals. According to the Vietnam National Administration
of Tourism in 2016, the number of international visitors to Vietnam was 10,012,735 (of which, about 7% are MICE tourists), with a total revenue of 400 trillion VND ICCA (2016) said that Vietnam had held 48 major conferences. Therefore, Vietnam
is more likely to develop MICE tourism
MICE tourism research situation
Research on MICE tourism mainly uses destinations as a main research unit for local development in general, tourism development in particular and focus on MICE
tourism development. Denicolai et al. (2010) suggested that in order to develop
tourism at a destination, attention should be paid to the network relationships of tourism companies and the development of the core competencies of tourism of
local resources and travel capacity of that destination. Bennett et al. (2010) showed
that policies such as transparency, co-operation, and consistency are effective in achieving the goals and objectives of the destination, or the needs of the parties concerned. González and Falcón (2003) argued that in order to have a successful travel destination for a type of tourism, it is necessary to consider the resources of the destination. Nakatani and Teixera (2009) focused on proposing and managing tourism policies, managing tourism-related entities to generate tourism development
of destinations, the role and involvement of public, private, supplier, and other stakeholders must be clear and service quality must also be concerned to create tourism development
In developing countries, MICE tourism is being emphasized. In China, except for the famous MICE cities such as Beijing, Shanghai, other cities with advantage
of tourism are focusing on research to develop MICE tourism such as Harbin, Heilongjiang Jiang, Tangshan, Kaifeng Mauritius, an island nation in the Indian
Ocean, has been researched by Seebaluck et al. (2013) for the opportunities of
cooperation and the challenges of MICE tourism development. Dinoviæ (2010) examined the successful experiences of MICE destinations applied for Montenegro, showing that the involvement of all stakeholders in the provision of resources for the formation of alternative tourism products has a difference in quality over the
current form. Ramgulamet al. (2012) applied the Australian MICE tourism
development experience to study the development of the MICE market in Trinitrat& Tobago
In Vietnam, there are very few in-depth studies on MICE tourism at large scale. Researches are only at the basic application level of MICE tourism for a locality, destination or for a local business such as Danang City, at 4-star hotels in
Ha Long - QuangNinh; in HoChiMinh City, HaiPhong; Enterprises such as Saigontourist Company, Indovina service and Vietnam Tourism Company in Hanoi Nguyen Chi Tranh (2014) based on real challenges such as undeveloped infrastructure, the development of MICE tourism spontaneously, tourism promotion is still not worth the potential, tourism products are still ambiguous, and the human resources are lacking, weak in MICE tourism. Resolution No. 08-NQ/TW of the Politburo dated January 16th, 1977 clearly stated the viewpoint of tourism development is to
Trang 3become a spearhead economic sector, a strategic direction for the countrys economic development, and accelerate the development of other branches and domains Therefore, the study of MICE tourism in Vietnam is very necessary. MICE tourism has the following important characteristics: (1) high growth potential, (2) high added value, and (3) high renewal benefits. With these characteristics, countries around the world are looking to develop MICE tourism as a national economic recovery (Janakiraman, 2012). Many studies on MICE tourism showed that attention needs to be paid to the network relationships of tourism companies, considering the resources of the destination to develop the core competencies of tourism of the resources, capabilities and the destination with the participation of all stakeholders
in the provision of resources to form tourism products that have a difference in
quality than the current form (Denicolai et al., 2010; González and Falcón, 2003;
Ðinoviæ, 2010); Le Thai Son and Ha Nam KhanhGiao (2014) developed a model of MICE tourism development, testing the model from MICE tourists. The results show that the destination resources are supported by the stakeholders and have the same impact on the development of MICE tourism in Da Lat. However, the model should be further examined and verified from the current support. From there, assess the suitability of the MICE tourism development model at a MICE destination
in Vietnam as compared to the overseas studies
In this study, Dalat was chosen as a MICE tourist destination to test the suitability of the MICE tourism development model in Vietnam because: (1) Dalat fulfills two conditions: on basic elements such as natural resources, human resources, climate, geographic location; and on advanced elements including improved transport infrastructure and digital data communications, basic human resources to meet the
needs and research institutes of the faculties. (2) Dalat considers transforming the
tourist operation model to the promotion of MICE tourism and it is a trend which
is suitable to the world in the direction of sustainable tourism development (Ðinovíc, 2010), (3) Dalat is increasingly chosen to hold more conferences, seminars at governmental levels, associations and sectors, (4) a quick survey with 400 Visitors
to MICE activities in Dalat accounted for 56.6% compared to 43.4% of visitors
2. Literature and Research Model Theoretical base
Michell et al. (1997) studying stakeholders suggested that: Stakeholders can be
identified by their possession or attributed possession of one, two, or all three of the following attributes: (1) the stakeholders power to influence the firm, (2) the legitimacy of the stakeholders relationship with the firm, and (3) the urgency of the stakeholders claim on the firm. If relevant parties only own a property, they are called the underlying stakeholders; If they own two characteristics, they will be known as expectation stakeholders; and with three characteristics, they are so-called clear stakeholders. Stakeholders are often considered as: (1) Destination Management Organization (DMO); Customer visite Bureau (CIB) which are often referred to as professional organizations, managers; (2) Operators, organizers, sponsors are considered separately in each research context; (3) Marketing mediation
is usually a bridge between the supplier and the destination or the tourist of
Trang 4destination; (4) MICE tourists; (5) MICE destinations; (6) Residental community and (7) Government
Resource-based theories (Acedo et ctg, 2006) include: a resource-based view -each independent organization has its own resource structure, namely, physical
assets, and its own possessiveness and / or control, which is inherent in its origins;
knowledge-based view - changes in the business environment will affect both supply and demand (Cooper, 2006), so destinations must continually adapt by creating , using the knowledge needed to respond to change; and relational view - when participating in a new network, the capacity of each stakeholder will grow stronger, which is also true for a destination
The relationship between MICE tourism development and resource factors
Impact from supplier resources to MICE destination resources
All MICE events require the provision of a variety of activities such as domestic and international transportation through travel agencies and companies; Accommodation of delegations, guests; convention center; exhibition hall; audio-visual services at high-end hotels and resorts are an important components of the MICE package service. In addition to the physical resources, the supplier can also provide additional resources and networking knowledge. The stronger the source
is, the more MICE destination to develop
H 1 : Supplier resources have a positive impact on MICE destination resources
The impact of the organizers resources on the MICE destination resources
Organizers use their credibility, brand of destination, their ability (tangible and intangible resources) to host and organize events, attract more resources to develop
destinations (Tingting et al., 2007). Governments are often important organizers
and donors to organize MICE activities to attract experts, domestic and foreign tourists. Professional associations and non-profit organizations often use this activity
to train, promote market development, transfer scientific research results, etc. Large companies, multinational companies also often hold MICE activities which target
to the needs of MICE visitors
H 2 : Resources Organizers have a positive impact on MICE destination resources.
The impact of professional organizational resources on MICE destination resources
In developed countries in Europe, America, some Asian countries like Japan, Korea, Singapore professional organizations have contributed greatly to the successful organization of a MICE event. Professional organizations can assist MICE destination resources based on knowledge and relationship-based resources, they rely on their skills and exp erience to increase the amount of information needed and important for MICE tourists. In addition to the experience, networking of professional organizations and other stakeholders, such as organizers, suppliers and visitors, has been strengthened through successful events
in the past
Trang 5H 3 : Professional organizational resources have a positive impact on MICE destination resources.
The impact of MICE tourist resources on MICE destination resources
Many authors have suggested that MICE visitors are defined as employees or sponsors
of MICE-based companies both domestically and internationally or have participated
in MICE activities (Cook et al., 2006). Engines are one of the key components that
explain what travelers are looking for and how to meet them (Fodness, 1994). MICE visitors spend not only on hotels, restaurants but also in the field of entertainment, exploring new cultures Campiranon and Arcodia (2008) showed that MICE visitors spend 3 times higher than normal visitors. This has helped to facilitate foreign
exchange and create more employment opportunities (Dwyer et al., 2001).
H 4 : MICE visitors resources have a positive impact on MICE destination resources.
Relationship between MICE destination resources and MICE tourism development
The development of tourism in general, MICE tourism in particular must be based
on the destination resources and the influence resources. According to Kotler et al.
(1999), in order to develop the local economy in general, to develop a sector in particular, it is necessary to maintain existing manufacturing sectors, build the tourism industry, develop the network to the outside, and attract external investors
to have new resources for investment and development. Hussain et al. (2012) showed
that the three sectors are tourism information, MICE visitors spending, and MICE individual and group visitors experience on rising events
H 5 : MICE destination resources have a positive impact on the development of MICE tourism.
Recommended research model
The above-mentioned hypotheses are also based on a model of factors affecting the development of MICE tourism in Dalat (Le Thai Son and Ha Nam Khanh Giao,
2014), there is a relationship between the resources of suppliers, organizers,
organizations, MICE visitors with MICE destination resources. The proposed model
is shown in Figure 1
Figure 1: MICE tourism development suggested model
H1+
H2+
H 3 +
H 4 +
H 5 + Organization resources
Supplier resources
Professional
organization resources
MICE tourist resources
MICE destination resources
MICE tourismdevelopme
nt
Trang 63. Research Methodology Qualitative and quantitative preliminary research
After reviewing the resource-based theory, the theory of development for the synthesis of related metrics, the author group had a group discussion with 11 experts in this field to develop a preliminary scale and create a questionnaire. A preliminary survey was conducted with 100 respondents from 35 MICE tourism organizations, together with reliability testing, and exploratory factor analysis to test preliminary results. Then, consulted with 11 experts the second time to adjust the wording for the questionnaire to make it easy to understand and appropriate
The results of the supplier resource scale (S) has 5 observed variables; Organization resource scale (O) has 4 observed variables; The professional organization resource scale (A) has 5 observed variables; The MICE tourist resource scale (T) has five observed variables; MICE destination resource scale (D) has 7 observed variables; The MICE tourism development (APT) has 6 variables
Quantitative research
The official scale of the research concepts was formed, consisting of 32 statements, measured on the Likert 5 ranging from 1 = totally disagree to 5 = totally agree SPSS 20 and AMOS, EFA, CFA, SEM are used
4. Research Results About the sample
The total number of questionnaires was 400, and 350 samples were collected. There were 65 rejected questionnaires, resulting in 285 valid questionnaires (71.25%) for the official study. Table 1 shows the sample statistics
Table 1 Summary of survey sample characteristics
(sample size n = 285)
(Source: Measured by the authors)
Trang 7Table 2 Cronbachs Alpha scale results
variables coefficient correlation
(Source: Measured by the authors)
Table 2 shows that these scales have high Cronbachs Alpha coefficients (range from 0.730 to 0.875> 0.6), ensuring reliability. KMO and Barlett testing for the KMO coefficient and Barletts mean value for sig. = 0.000 < 0.05. All observed variables of this scale have aitem- total coefficient of correlation greater than 0.3,
so they are used for subsequent EFA
The EFA method is used for 17 observed variables, using the Principal Component Analysis method with Varimax rotation and the stoppage when extracting the Eigenvalues elements. The results of the EFA with the remaining 17 observed variables, KMO coefficient = 0.827> 0.5 which is satisfactory, explaining the appropriate sample size for factor analysis and the Barlett coefficient with Sig
= 0.000 < 0.5 (correlation between variables) confirms that the above analysis method is appropriate. The average variance extracted is 56.612% (> 50%) which means 17 extracted observed variables explain about 56.612%of the variability of observed variables and factor loadings are greater than 0.5, which is satisfactory (Table 3)
Table 3 Results of factor analysis for independent variables
Factor
contd. table 3
Trang 8A1 0.824
(Nguồn: Kếtquảxửlýtừdữliệuđiềutra)
The results of the dependent variables analysis with the 4 variables show that, with the principal component extraction method, Varimax rotation allows two factor with 13 observed variables and the average variance extractedof 75.448% (> 50%), KMO coefficient = 0.877 > 0.5 which is satisfactory, the Eigenvaluesare 5.034 and 2.302 (> 1), the factor loadings of coefficients of the observed variables are greater than 0.5 => satisfactory scale (Table 4)
Table 4 Results of factor analysis of dependent variablesMICE tourism development
Factor
(Source: Analysis results of the authors)
Factor
Trang 9When conducting the critical factor model analysis, it shows that the model result has 308 degrees of freedom, Chi-square = 494.328 with p = 0.000; GFI = 0.890; TLI = 0.932; CFI = 0.940; RMSEA = 0.046 less than 0.06. The confirmatory factor analysis with all indicators results suitable for the Multi-Sample Model, the scales satisfied the requirements to conduct SEM analysis. A summary of the results of the confirmatory factor analysis (CFA) is shown in Table 5
Table 5 Summary of test results of the model
variance loading extracted
(Source: Results from data collection)
The data in Table 5 shows that reliability and overall reliability are all obtained; the average variance extracted of organization resources, MICE tourist resources, and MICE destination resources is below 0.5, while factor loadings are high. This
is also a limitation because the model was first tested theoretically. The formal theoretical model after the test is adjusted as shown in Figure 2
Figure 2: The formal theoretical model after verification
H 1 +
H 2 +
H 3 +
H 4 +
H 5 + Organization resources
Supplier resources
Professional
organization resources
MICE tourist resources
MICE destination resources
MICE tourismdevelopme
nt
Trang 10Figure 3: SEM results of standardized theoretical model
Examining the SEM model (Figure 3) shows that the model has 337 degrees of freedom, chi-square = 563.468 (p = 0.000), Chi-square / df = 1.672 is less than 2; Indicators: GFI = 0.881; TLI = 0.923; CFI = 0.931 and RMSEA = 0.049 are less than 0.06. The results of the scale tests showed that the scales were reliable, the overall model fit statistics show that the model fits the data within established
guidelines.
The standardized regression coefficients of the major parameters are presented
in Table 6 showing that these relationships are positive from the groups of resource
Table 6 Standardized regression coefficients of the theoretical model
development
(Source: Results from data collection)